You’ve heard this one many times before, right?
“Marketing is a numbers game.” They said.
“Spend enough on advertising and get your name out there, and you’ll eventually succeed.” They said.
They were wrong.
Marketing and sales are not simply a “numbers game”.
At least not the game you might have been taught to play.
And spending a lot of money to just “get your name out there” can make you the most popular bankrupt entrepreneur in your city.
This is where marketing to build a brand vs. marketing to build better sales sometimes starts a fight among die-hards in brand marketing vs. lead generation (direct marketing) camps.
With brand building, your goal is to change the way people think and what they feel and say about you and your company. Important stuff, for sure. However, the time and distance between money invested and money returned with friends attached can be long and hard to measure.
Money spent on this type of marketing is usually allocated as a percentage of revenue and fits into the category of “get your name out there” marketing.
With lead generation marketing, your goal is to motivate people to respond right now, this very second, to something you are offering them. The distance between money invested and money returned with friends attached is much shorter and easier to measure.
Money spent on lead generation marketing is allocated based on return on investment. If you send a dollar out and it comes back with another dollar attached, you dig into your pocket and find more dollars to send out.
No more guessing about how much to spend on marketing.
Spend as much as you can and stop only when the return is no longer there, or you’ve got all the business you can handle.
For small businesses, it’s almost always smarter to invest in generating leads and getting new business coming in the door than it is to build a brand, at least for now. Let your brand building happen as a consequence of the fantastic experience you create for your new customers.
There is an important place for brand building marketing, for sure. Just remember to think like an investor. Think return on investment and the time it takes to realize that return. Take great care to measure the pacing, sequencing and mixture of lead generation vs. brand building you decide to invest in.
Want to generate more leads and increase sales for your business? Join me online for my next revenue and profit recovery focus group. You can learn more and register here: https://your7figurebusinesscoach.com/focusgroup/